The S&P 500 closed 1.04% higher today and the Dow was up by 0.71%. Without any negative macro news from Europe and with continued stronger than expected fourth quarter earnings, the market moved higher again today. For the first time in years the economies of the U.S., China and Europe are all improving at the same time.
HMOs, technology, retail and banks were the leaders today. Managed care stocks worked higher after Cigna reported a spin-off of its variable annuity business. Semiconductor equipment makers were a leading industry group in the technology sector today. JC Penney and Gamestop were leaders in the retail space. Online retailers like Amazon and eBay were also higher at the close.
Financials were up more than 1% on the day. Banks and brokers were leaders in the group. Larger money center banks outperformed regional banks. Insurance companies continue to work higher as earnings in the group have been better than expected.
Multi line industrials were ahead of the market today. Early cycle names in the industry group like MMM traded higher also. Agricultural equipment stocks were ahead of the tape after AGCO reported earnings ahead of expectations. Engine makers were higher on the strength in earnings from Eaton.
Energy traded slightly below the overall market. Crude fell by 0.50% and natural gas traded higher by 3%. Drillers and oil service names lagged. Coal stocks traded lower on disappointing earnings from Arch Coal.
Drug stores and managed care stocks led the healthcare sector today. Becton Dickinson surged by 3% after they reported better than expected earnings. Healthcare stalwarts like Johnson & Johnson, Pfizer and Eli Lilly all traded higher from the open.
Source: PFS Group
